Spark Networks Inc. [
LOV], owner of the popular Jewish romance Web site JDate.com, is reportedly seeking a match of its own in a deal that could be valued up to $185 million.
Besides JDate.com, Beverly Hills, Calif.-based Spark also owns other dating Web sites including AmericanSingles.com, LDSMingle.com, BlackSingles.com and ChristianMingle.com. Spark is in early talks to sell itself to suitors that include Yahoo! Inc. and eHarmony.com Inc., as well as Barry Diller's IAC/InterActiveCorp. and Rupert Murdoch's News Corp., according to a report Friday in the New York Times.
Spark representatives offered no comment on Friday's report. The news report said that Spark's various dating sites attracted more than 2.4 million visitors in November, placing it fourth among dating sites behind Yahoo!, IAC/InterActive's Match.com and SinglesNet.com.
Spark recorded Ebitda of $9.91 million on sales of $66.44 million in the 12 months ending Sept. 30. Shares of the company were trading up 81 cents, or 17%, on Friday to $5.71. The company, which trades on the American Stock Exchange, carried a market cap of about $130 million before trading Friday. AGM Partners LLC is advising Spark, according to the report.
The discussions come as Internet titans are engaged in a land grab for red-hot social networking sites. In October, Microsoft Corp. announced it would invest $240 million in Facebook Inc., reportedly beating back Google Inc. to secure a deal. In July 2005, News Corp. sparked the dealmaking with its $580 million purchase of the parent of Myspace.com.
A purchase of Spark would give any of the bidders an overnight boost in unique visitors and help the winner establish critical mass, a key factor in a business where consumers tend to gravitate toward the most popular sites. Spark could also provide more niche audiences to general sites such as Yahoo! and Myspace.
After years of explosive growth among dating sites many in the industry expect rates to slow, which could drive consolidation.
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